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The Closing Bell: Stocks Climb On Trade Optimism

FYI: U.S. stocks rose Wednesday as investors awaited the resumption of U.S.-China trade talks and looked for fresh signals from the Federal Reserve on monetary easing.

The Dow Jones Industrial Average rose 0.70% and the S&P 500 climbed 0.91%. The gains were broad, with all 11 sectors of the S&P rising, led by technology stocks. The Nasdaq finished up 1.02%.

Tensions between the U.S. and China appeared to ratchet up this week as the U.S. imposed export restrictions on more than two dozen Chinese firms and put visa restrictions on Chinese officials. But market observers Wednesday pointed to optimism on the trade front as Bloomberg reported that China was open to reaching a partial deal.

Investors have been closely listening to remarks from Federal Reserve officials for fresh signals about U.S. monetary policy. Fed Chairman Jerome Powell said Wednesday at an event in Kansas City that the U.S. economy faces some risks but is in a good place overall.

The U.S. central bank also released minutes from its September meeting, showing that officials worried slowing global growth and rising trade-policy uncertainty could exert a drag on hiring and the U.S. economy. The minutes didn’t provide a firm sign about upcoming policy moves, but a subsequent run of weak factory data and other signs of a slowdown have fueled market expectations of another rate cut in October.

Among individual companies, Johnson & Johnson shares dropped 2.5% after a Philadelphia jury ordered the company to pay $8 billion in damages to a man who said that using antipsychotic drug Risperdal caused enlarged breasts. U.S. Steel shares fell 8.3% after the company said it would cut costs and replace its chief financial officer with another company executive.

The yield on the 10-year U.S. Treasury note inched up to 1.577%, from 1.532% Tuesday.